Spring into Farm Service Agency for 4-H, FFA youth loans

“Spring time is upon us and it is time to consider contacting your local USDA-Farm Service Agency (FSA) to seek applications and financing for 4-H and FFA Rural Youth Livestock projects,” stated Libby Anderson, Farm Loan Manager.

Farm Service Agency is a valuable tool in the lending toolbox. The loan program assists youth interested in agriculture to establish and operate income-producing projects in connection with 4-H clubs, FFA and other agricultural groups. FSA can be the first exposure to financing and credit for youth.

FSA rural youth loans have become very popular in the area over the years as proven by the repeat youth loan borrowers year after year. The youth loan program shifts the responsibility and financial burden from the parents to the youth. FSA youth loan participants must remember to be responsible for the day-to-day care of the animals

Basic eligibility requirements include being a U. S citizen or legal resident alien, at least 10 years of age at application time. Projects must be planned and operated with the help of the organization advisor or leader and have parental or guardian support. The applicant must have a social security number and a checking or savings account established. The maximum youth loan limit is $5,000 per youth. The current interest rate for March is 2.625 percent.

Security for Farm Service Agency youth loans is the project animal, which is generally sold at local fairs. Farm Service Agency will file a lien and FSA’s name is added to fair proceeds as loan repayment.

“We encourage youth through their clubs or as individuals to get out into your community to market yourselves to seek additional fair support aside from the Booster Clubs,” stated Anderson.

“Youth involved in 4-H and FFA do not have to be from farm families, they can live in town and have their livestock projects housed at alternative locations. Memories and lasting friendships are made in 4-H and FFA and Farm Service Agency is here to help assist you to make these memories,” said Anderson.

For more information or to obtain an application, contact Anderson at 509-754-2463.